In recent months, we’ve witnessed a significant increase in landlords exiting the market, opting to sell their rental properties. Rightmove reports that nearly 20% of homes currently listed for sale were previously rented, marking the highest proportion on record.
When it comes to selling a Buy To Let property, preparation is key, especially when it comes to documentation.
Selling a rental property, particularly one with tenants in place, requires a unique set of documents that cover everything from proof of ownership to compliance and tenant related paperwork. Property documentation can ensure a smooth sales process and provide buyers with the assurance they need to move forward.
On this page, we’ll cover all the essential documents required for selling a Buy To Let property, including legal and compliance certificates, tenant agreements, financial records, and additional documents for leasehold properties.
Selling a rental property can often be fairly straightforward, especially if the property is empty and ready for immediate occupancy. However, several factors can affect how easy the sale will be, such as tenant rights, the terms of the tenancy agreements, current market demand and the condition of the property itself. The process can be more complicated if the property is tenanted.
If your rental property is occupied, this can have a mixed impact on its attractiveness to buyers. Properties with long-term tenants often appeal to other landlords and property investors who see it as an opportunity to acquire an income-generating asset without a gap in rental income.
However, it may limit your buyer pool to investors rather than potential owner-occupiers, especially if you’re selling on the open market. Owner-occupiers often prefer empty properties so they can move in immediately, whereas investors might appreciate a property that already has tenants in place.
Additionally, if there are specific clauses in the tenancy agreement that complicate tenant eviction or restrict access to the property for viewings, this could further impact the ease of sale.
One way to overcome these challenges and simplify the sale of your rental property is by using a cash house buying company, like The Property Buying Company. Cash buyers can buy your rental property directly, often in as little as 7 days, regardless of whether it’s empty or tenanted. This is an ideal option if you want to avoid the delays and uncertainties associated with traditional house sales.
It doesn't matter if you live overseas and want to sell your rented property in the UK, or if you are a UK resident. Our services are solely online which means you can sell remotely without having to lift a finger.
When selling a Buy To Let property, having the correct documentation is essential to ensure a smooth and efficient process. Here are the standard documentation you will need to sell your Buy To Let property:
Identification
Property Title Plan & Register
Energy Performance Certificate (EPC)
Proof of ownership
TA10 Fittings and Content Form
TA6 Property Information Form
Mortgage details (if applicable)
Capital Gains Tax due
When selling a Buy To Let property with tenants in place, you will need to have several tenants related documents ready. They provide potential buyers with transparency about the existing tenancy and help demonstrate the property’s rental history and compliance with legal requirements.
Here’s a closer look at each tenant document:
Copies of the current tenancy agreements outline the rental terms agreed upon with existing tenants. They include the rental amount, lease duration, start and end dates, and any additional terms or conditions.
This document is important for buyers, particularly investors, as it provides insight into the property’s income potential and tenant obligations. A clear, well-structured tenancy agreement reduces ambiguity and makes it easier for buyers to understand the existing tenancy.
A Section 48 Notice, required under the Landlord and Tenant Act 1987, informs tenants of the landlord’s contact details for serving legal notices. It’s essential for potential buyers, as it provides proof that the landlord has legally disclosed their contact information to the tenants.
If a Section 48 Notice wasn’t initially issued, it’s often possible to rectify this, but having it in place ensures compliance with the law and avoids any potential complications.
A Section 21 Notice, also known as a “no-fault” eviction notice, is used to end an Assured Shorthold Tenancy in England or Wales. If you intend to sell the property empty, a Section 21 Notice can be issued to the tenants to request possession at the end of their fixed term or during a periodic tenancy, without needing to cite a reason.
This document is important if the buyer wishes to take possession without tenants in place. If a Section 21 Notice has already been served, having proof of this will streamline the sale process for any buyer planning to occupy the property themselves.
A Section 8 Notice is used to terminate a tenancy when the tenant has breached the tenancy agreement, such as by failing to pay rent or causing property damage. This document is important for buyers who may wish to end the tenancy due to tenant behaviour issues, as it outlines the legal grounds for eviction.
If a Section 8 Notice has been served, having this document on hand can assure potential buyers of the landlord’s legal efforts to address tenancy issues.
This certificate is confirmation that the tenant's deposit has been protected in a government approved tenancy deposit scheme, such as the Tenancy Deposit Scheme (TDS), MyDeposits, or Deposit Protection Service (DPS).
By law, landlords in the UK must place deposits in an approved scheme within 30 days of receiving them. The Deposit Protection Certificate reassures buyers that the landlord has complied with deposit regulations, minimising the risk of disputes or claims against the landlord for failing to protect the deposit.
This documentation provides a history of rental payments, showcasing whether the tenant has consistently paid rent on time or if there have been any missed or delayed payments.
A thorough rental payment record is especially beneficial for investors, as it offers a snapshot of the property’s income stability and can help reassure them of the tenant’s reliability. It demonstrates steady cash flow, which can be valuable to potential buyers.
If the property will be sold vacant, any notice served to tenants should be documented. This includes details of the notice type (e.g. Section 21 or Section 8 Notices), date of issuance, and expected move out date.
Documenting the notice ensures compliance with legal notice requirements, avoids potential disputes and provides clear information for potential buyers about when the property will be vacant.
If your property requires a House of Multiple Occupancy (HMO) licence (often the case for properties rented to five or more tenants forming more than one household), you’ll need to provide the current HMO licence issued by the local council.
This licence confirms that the property meets the necessary standards for living conditions, management, and safety. Buyers will want to review the licence to understand the permitted occupancy level, licence conditions and expiration date.
If you have recently applied for a House of Multiple Occupancy licence renewal, provide proof of the application submission and any documentation showing the local council’s acknowledgement of receipt. This can be important for buyers if the current licence is close to expiry or renewal is pending.
When selling a Buy To Let property, having up to date safety and compliance certificates is essential. These documents not only demonstrate your adherence to legal requirements as a landlord but also assure potential buyers that the property is safe for tenants.
Here are the key safety and compliance documents needed:
A Gas Safety Certificate is a legally required document that verifies all gas appliances, fittings and flues in the property are safe and functioning correctly. This certification, issued by a registered Gas Safe engineer, must be renewed annually and provided to tenants within 28 days of the check.
For buyers, an up to date Gas Safety Certificate offers peace of mind, showing that the property's gas installations are maintained to regulatory standards, reducing the risk of gas leaks, carbon monoxide poisoning and other hazards.
For a HMO, smoke alarms are usually required in every room or communal area, depending on council regulations.
An Electrical Safety Certificate confirms that all electrical installations (e.g. wiring, sockets, and appliances) in the property meet safety standards. Under UK law, landlords must conduct an Electrical Installation Condition Report (EICR) every five years to ensure the property’s electricity is safe for tenants.
This report highlights any potential issues and grades them by severity, providing a clear record of necessary repairs or upgrades. A valid Electrical Safety Certificate not only reassures buyers about electrical safety but also demonstrates that the property complies with legal obligations, which is particularly important for buyers who plan to continue renting out the property.
Fire safety compliance includes maintaining essential fire safety equipment and meeting legal obligations for smoke and carbon monoxide alarms. By law, landlords must install at least one smoke alarm on every floor of a rental property and a carbon monoxide alarm in any room containing a solid fuel-burning appliance.
Regular checks should be documented, and any fault alarms replaced promptly. Additionally, for properties with communal areas (e.g. multi-unit buildings), fire risk assessments may be required. Documenting fire safety measures and compliance reassures buyers of the property’s safety, particularly if they intend to keep it as a rental investment.
With recent attention on cladding safety, particularly following the Grenfell Tower incident, buyers will want assurance the building is compliant and safe, which is why if your property has cladding, you should also get a Cladding Compliance Report.
A Legionella Risk Assessment evaluates the risk of Legionella bacteria in the property’s water systems, which can cause Legionnaires’ disease, a type of pneumonia. Although landlords are not legally required to conduct Legionella testing, they must assess and manage risks associated with it.
This is especially relevant for properties with water tanks, hot tubs or complex plumbing systems. Having a documented Legionella Risk Assessment ensures potential buyers that the water systems are safe and managed appropriately, which is essential for maintaining tenant health and safety.
If you're acting as the executor of a will and the rented property is part of a probate estate, there are additional documents you'll need to gather to complete the sale.
As you can probably already tell, there are quite a few documents needed to sell a Buy To Let property, and there are still more to go! The following documents provide potential buyers with insight into the property’s financial status, maintenance history and legal standing:
Documenting the history of repairs, upgrades or routine maintenance carried out on the property can reassure potential buyers about the property’s upkeep. This can include information on major repairs, such as roof replacements, boiler installations, electrical or plumbing work and any refurbishments or upgrades.
Maintenance records demonstrate that the property has been well-cared for, which can improve its appeal to buyers by reducing perceived future maintenance costs. Additionally, a documented history of repairs can help substantiate the house’s asking price by showing its maintained or improved condition.
Providing information on any current landlord or building insurance policies is important for potential buyers, especially if they plan to rent out the property. This can include details about the policy’s coverage, the provider and any premium costs. Insurance policies protect against potential risks such as property damage, tenant related issues, or liability claims.
Having this documentation ready allows buyers to see what coverage is in place and may help them decide if they want to assume the current policy (if transferrable) or arrange for their own. Comprehensive insurance documentation also shows buyers that you’ve prioritised protecting the property and its occupants.
If the property is leasehold, you’ll need to provide records of any service charges and ground rent payments, along with recent communications between you and the management company.
Service charges cover the costs of maintaining shared or communal areas, such as hallways, elevators, and exterior upkeep, while ground rent is the annual payment made to the freeholder.
This information is vital for buyers to understand the additional costs associated with owning a leasehold property. Any arrears or disputes related to service charges should be disclosed, as they could affect the buyer’s willingness to proceed.
For leasehold properties, a copy of the lease agreement is essential. The lease agreement outlines the terms, conditions, and obligations of both the leasehold and the freeholder, including any restrictions on property use, subletting or renovations.
Buyers need to review the lease terms to understand their responsibilities and rights, making this document important for a smooth transaction.
Under the Landlord and Tenant Act 1985, a Section 20 Notice is required if you intend to undertake major works on the property, which could result in a significant service charge increase. Examples of major works include external repairs or roof replacements.
Buyers need to see any recent or pending Section 20 Notices, as they will be liable for a share of these costs if they buy the property. Disclosing these notices makes sure buyers are fully informed about potential financial outlays, preventing unexpected expenses and fostering trust in the sale process.
Selling a tenanted property can be slightly more complicated than selling an empty property, as there are some legal and practical factors to consider. For starters, tenant rights are protected by several laws, including the Housing Act 1988, and any sale must respect their existing tenancy agreement.
This means that if a buyer intends to live in the property themselves, they may face limitations and delays, as they would need to provide tenants with proper notice – often a two month notice period for assured shorthold tenancies in England, using a Section 21 Notice. This process can extend the sale timeline, and in some cases, lead to complications if tenants are unwilling to vacate.
The buyer pool for tenanted properties is often more limited, as not all buyers are looking for investment properties with tenants in place. However, for investors, a tenanted property can be highly attractive, as it offers an income stream from day one.
An already tenanted property appeals to buyers who wish to avoid the hassle of sourcing and screening new tenants. This is particularly true if the property has a good rental track record, reliable tenants and positive rental yields, as these factors increase the property;s appeal to investors.
The best way to sell your Buy To Let property depends on your financial goals, timeline and the condition of your property. For a fast, straightforward sale, selling through a reputable cash house buying company, such as The Property Buying Company, can be an excellent option.
As leading cash buyers, we specialise in buying properties quickly, often in just a few days, and we cover all legal and selling costs, simplifying the process and ensuring you receive a hassle free, guaranteed house sale.
We offer a flexible approach to suit your needs by either buying your house directly, giving you a secure, cash offer with a fast completion timeline, often in as little as 7 days. This option is particularly beneficial if you need to free up capital quickly or wish to avoid the uncertainties of the open market.
Alternatively, if you’re open to attracting other investors, The Property Buying Company can connect you with a network of property investors looking for Buy To Let opportunities. This approach is ideal if you want to maximise your chances of finding the right buyer while still benefiting from a streamlined, professional sales process. Connecting with investors allows you to sell with tenants in place, appealing to buyers seeking immediate rental income.
With over 200 years of combined experience in the property industry and more than 13 years as a leading UK cash buyer, The Property Buying Company has a strong track record of helping landlords sell their properties. Their expertise extends across diverse property types and unique landlord challenges, including Budget changes and tenant management.
Rated as ‘excellent’ by hundreds of satisfied landlords, The Property Buying Company is trusted by those looking for a reliable, fast and efficient property sale solution. We understand the unique needs of landlords and aim to make the process as stress free as possible. Sell your rented property with us today.